Deficit increases in austerity-plagued UK

In other words, what liberal economists said would happen with austerity is happening. The Tories can’t admit that their plan is a failure so will surely continue their program of destruction. Bloomberg:

The shortfall, which excludes government support for banks, was 17.9 billion pounds ($28 billion) compared with 15.2 billion pounds a year earlier, the Office for National Statistics said in London today. Economists forecast a deficit of 14.8 billion pounds, according to the median of 16 estimates in a Bloomberg News survey. Spending jumped 7.9 percent and revenue rose 1.6 percent. Income-tax receipts fell 7.3 percent.

The figures may provide ammunition to the opposition Labour Party, which says the government is making the recession worse by trying to cut the deficit too quickly. With the euro-region debt crisis intensifying, the data cast doubt on whether the government can achieve its goal of cutting the deficit to 120 billion pounds in the current fiscal year.

“The deficit is going to be higher purely on the basis that the economy is going to be weaker,” said George Buckley, chief U.K. economist at Deutsche Bank AG in London. “It’s not impossible that we get deficit that is 7.5 billion pounds higher and that growth is flat for the whole year.”

This failed economic plan is what the GOP wants to bring to America. Besides it’s keen ability to undermine the social system and bring down the entire economy, it’s hard to say why they think it will be a success. But maybe that’s their plan.

Chris in Paris
An American in Paris, France. BA in History & Political Science from Ohio State. Provided consulting services to US software startups, launching new business overseas that have both IPO’d and sold to well-known global software companies. Currently launching a new cloud-based startup. Full bio here.